Australians are living longer, and their state of health in these years has important implications for population health and wellbeing and for Australia’s health and care systems. Between 2003 and 2015, life expectancy at birth increased for both sexes, and most of this increase corresponded with an increase in years living free of disability and free of severe or profound core activity limitation. Older Australians have also seen increases in the expected number of years living free of disability.